US Mortgage Applications Increase for First Time Since Early May

US mortgage applications for home purchases increased for the first time since early May as borrowing costs eased.

(Bloomberg) — US mortgage applications for home purchases increased for the first time since early May as borrowing costs eased.

The Mortgage Bankers Association index of applications for home purchases rose 7.6% in the week ended June 9 to a four-week high of 163.2. Also helped by a pickup in refinancing, the overall measure of mortgage applications increased 7.2%, the biggest weekly advance in three months.

The contract rate on a 30-year fixed mortgage decreased 4 basis points to 6.77%, according to the data out Wednesday. The refinancing index increased 6%.

The figures suggest mortgage activity, and the housing market more broadly, is stabilizing. Still, a lack of inventory and elevated borrowing costs are limiting momentum.

The survey, which has been conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts. The data cover more than 75% of all retail residential mortgage applications in the US.

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